WSJ SUMMARY

Running head : WSJ SUMMARY

WSJ Summary

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WSJ Summary

On February 25 , 2009 in Wall Street Journal Mary Pylon wrote about AmEx asking its customers to close their credit card accounts . As a stimulus AmEx offered its clients a 300 prepaid gift . Pylon (2009 ) suggests that the unusual move underscores how quickly conditions have deteriorated in the credit-card market . While mortgage crisis has become the source of major economic pressures , credit card companies still fight to survive . It should be said , that

credit card holders are not given any choice and if they do not agree to close their accounts by February 28 they will not receive the gift , but their accounts will still be closed That means that for the customers who have sizeable credits but do not use their credit cards actively , AmEx will offer a gift in exchange for getting rid of them . Each customer was sent a letter with a code which if submitted online , automatically cancels the card . If the customers agree to cancel their cooperation with AmEx and to close their accounts they are not charged additional fees and are subject to the same interest rates . At the same time , for those who are late with payments AmEx has already increased lateness fines . Moreover , the customers who agree to close their accounts , even voluntarily , damage their credit history . In simple terms , AmEx says we want you out and we want to entice you financially to get out (Pylon...